DEBT CONSOLIDATION LOANS
We provide debt consolidation loans secured to residential, commercial, and rural real estate across Canada.
WHAT IS AN DEBT CONSOLIDATION LOAN
A debt consolidation loan is a loan that is provided to a property owner to consolidate and manage their debts. Commonly, a debt consolidation loan is provided to combine several smaller debts, simplify your payments, reduce the interest you are paying, and improve your credit score. These smaller debts can include bills, credit cards, lines of credit, personal loans, and taxes.
- Before Debt Consolidation
Property Value: $500,000
Mortgage: $300,000 at 5% $1,745/m
Credit Card: $25,000 at 19% $395/m
Personal Loan: $25,000 at 6% $483/m
Total Monthly Payment: $2,623/m
- After Debt Consolidation
Property Value: $500,000
Mortgage: $350,000 at 3% $1,656/m
Credit Card: $0 Paid
Personal Loan: $0 Paid
Total Monthly Payment: $1,656/m
You save $967 per month or $11,604 per year!
Financial institutions have strict lending criteria and it can often be difficult to obtain a debt consolidation loan. In contrast, private lenders are less stringent and use common sense underwriting. Private lenders are focused on equity, rather than income or credit.
A debt consolidation loan is provided based on a percentage of the equity in a property. The more equity you have, the larger a debt consolidation loan you can likely obtain.
A debt consolidation loan can be registered against your property as a first mortgage, second mortgage, or third mortgage. Commonly, debt consolidation loans are provided as second mortgages. The reason for this is because most property owners already have an existing first mortgage with a low rate. Therefore, it is more financially feasible to obtain a smaller second mortgage. Debt consolidation loans are frequently obtained to satisfy short term goals that eventually lead to meeting long term objectives.
HOW TO QUALIFY FOR A DEBT CONSOLIDATION LOAN
To qualify for a debt consolidation loan, you must own a property and have sufficient equity.
We are an equity-based lender. Regardless of income or credit, if there is sufficient equity, you are approved.
GET A DEBT CONSOLIDATION LOAN
Visit our Loan Products page to learn more about what we have to offer.
View our Guidelines and Lending Areas to get started.
Find out if we can help by requesting a Free Consultation or Apply Online.
Interested in getting a debt consolidation loan? Contact us to get started.